Private equity funds raised an aggregate $186.1 billion in the first half of 2013, an increase of 30% year on year, according to data provider Private Equity International.

A total of 290 funds closed in H1 2013 (compared to 276 in H1 2012), the average size of which was $642 million, the highest half-year average since the financial crisis.

The largest fund to close in the first half was Warburg Pincus' fund XI, at $11.2 billion.

PEI also noted that buyout funds, at $89.1 billion secured their highest half-year total since 2008.

Overall, there are now almost 1,600 funds in market, targeting an aggregate $677.8 billion. Five are looking to capture more than $10 billion each from LPs.

The five largest funds raised 23% of all capital during the monitored period, continuing a trend of more capital being raised by fewer managers. This trend was also apparent in the May 2013 PEI Limited Partner Sentiment Survey, which found 93% of LPs planned to increase their allocations to the asset class or maintain it at the same level, while one third were looking to reduce the numbers of GP relationships they have.

Said Dan Gunner, director of research and analytics, in a statement: “These numbers demonstrate the continuing recovering of private equity fundraising. It is likely that 2013’s full-year fundraising total will outstrip any year since the crisis. However, our conversations with LPs tell us that they are increasingly exacting when committing to private equity funds. More and more, they will only partner with managers who can show an impressive track record, which makes the fundraising environment as challenging as ever. Indeed, the market dominance of the largest funds to close is clear to see.”

Editor's Note

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